Canadian Arrow Mines Ltd. - Kenbridge Nickel-Copper Deposit Resource Estimate Update - Increases Contained Nickel in Open Pit Portion By 75%



    SUDBURY, ON, Jan. 9 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the
"Company") announced today that it has received the executive summary from SRK
Consulting (Canada) Inc. ("SRK") of Toronto regarding the updated mineral
resource estimate for its Kenbridge Nickel Mine Property. Highlights of the
resource estimate include a substantial increase of 75% in the contained
nickel for the proposed open pit portion of the deposit.

    The SRK estimate includes the following resources:

    
    -   3.4 million tonnes of Indicated Resource grading an average of
        0.60% nickel and 0.33% copper and 0.1 million tonnes of Inferred
        Resource grading an average of 0.74% nickel and 0.53% copper
        contained within the upper 150m of the deposit at a cut-off of
        0.3% nickel.

    -   0.3 million tonnes of Indicated Resource grading an average of
        1.09% nickel and 0.47% copper and 0.7 million tonnes of Inferred
        Resource grading an average of 0.89% nickel and 0.44% copper
        contained below the 150m level of the deposit at a cut-off of
        0.7% nickel.
    

    SRK qualifies the mineral resources above the 150m level with a higher
confidence classification due to the higher density of drill holes. The
mineral resources below the 150m level are characterized by sparse drill
spacing and could be partially upgraded to indicated category after additional
drilling and a more comprehensive understanding of geological and grade
distribution.
    Commenting on the resource estimation, President Kim Tyler, stated, "The
Company is extremely pleased with the upgrading of the resource estimate for
the Kenbridge Deposit as provided by SRK. We were very confident that the
aggressive drilling campaign that we initiated on the proposed open pit
portion of the deposit would lead to an increase in the resources for that
part of the deposit. The estimate indicates we were able to increase the
tonnage for the open pit portion by 67%, the nickel grade by 5%, the copper
grade by 31% and the overall contained nickel by 75%. At the same time almost
all of the Inferred Resources for the open pit portion of the deposit were
moved into the Indicated Resource category reflecting the increased confidence
that our diamond drilling program has added to the interpretation of the
deposit."
    He added, "this updated resource estimate incorporates 146 new drill
holes which were almost exclusively targeted to increase the confidence of the
open pit portion of the deposit. Previous pit optimization work on the March
2007 resource model, suggested an open pit depth of 150m. This new resource
estimate is being utilized for the completion of the Preliminary Assessment
Study (PAS) which we expect to release very shortly. Our attention has now
turned to the lower portion of the deposit, below the pit depth, in order to
increase our confidence level for the underground portion of the deposit. We
expect to see similar positive results as evidenced by some of our recently
released results for the deeper drilling. We anticipate completing the infill
drilling of the deeper portions of the Kenbridge deposit in the first half of
2008 so that we can incorporate all drill data into a feasibility study."
    The Company has contracted WMT Associates and Micon International Limited
to provide a PAS utilizing the SRK resource estimate to determine the economic
potential of developing the Kenbridge resource. The PAS will identify the
approximate costs and establish the resource thresholds required to advance
the project to feasibility stage. Although the Kenbridge Nickel Deposit was
never mined due to metal prices during the 1950s, it was developed with a
2,042 foot (622 metre) shaft and two working levels.

    Resource Classification

    The Kenbridge resource estimate was classified by Mr. Glen Cole, P.Geo
Principal Resource Geologist with SRK according to the CIM Definition
Standards for Mineral Resources and Mineral Reserves (December 2005).
According to Mr. Cole "It is apparent that considerable resource increases
have occurred in terms of classification, tonnes, grade and contained metal.
The improvements are particularly apparent within the shallow (above 1360m EL)
resources which are characterized by increased drill densities and enhanced
data quality."
    In the previous resource estimate by SRK (March 2007) all Kenbridge
resources were classified as Inferred, with IF1 generally assigned to the
shallower resources with a higher drill density and IF2 to deeper resources
associated with low drill densities. Due to a better geological understanding
of the resource and due to a higher quality larger database, a new resource
classification scheme has been designed for this new resource estimate. All
mineral resources are now classified as Indicated or Inferred and subdivided
into Opencast and Underground Resources, based on different cut-off grades.
The Opencast mineral resources are delineated by appropriate search ellipses
as defined by variography to the 1360 metre elevation (a vertical depth of
approximately 150m). The Underground mineral resources are defined by
appropriate search ellipse distances below the 150m level and reported at a
higher cut-off.

    Resource Statement

    The Kenbridge mineral resource model was constructed in Datamine Studio
using a geostatistical block model approach constrained by NSR wireframes
considering both nickel and copper composite grades. Intrusive dykes and
country rock xenoliths were modeled. Block size was set at 5m on all sides.
Assays were composited to equal 1.5m lengths with zero values assigned to
unsampled intervals. Nickel and copper grades were estimated by ordinary
kriging using parameters set by variography analyses. The new updated mineral
resource statement for the Kenbridge Nickel Deposit is presented in the Table
1 below:

    
    Table 1. Updated Mineral Resource Statement, Kenbridge Nickel-Copper
    Deposit, Ontario, SRK Consulting, January 2, 2008.
    -------------------------------------------------------------------------
                                                     Contained Ni
    Classification   Tonnes (Mt)  Ni%   Cu%   S.G.         (000't)
    -------------------------------------------------------------------------
    (*) Opencast Potential (above 1360m EL)
    -------------------------------------------------------------------------
    Indicated              3.4   0.60  0.33   2.95           20.3
    -------------------------------------------------------------------------
    Inferred               0.1   0.74  0.53   2.95            1.0
    -------------------------------------------------------------------------

    (*) Underground Potential (below 1360m EL)
    -------------------------------------------------------------------------
    Indicated              0.3   1.09  0.47   2.95            3.1
    -------------------------------------------------------------------------
    Inferred               0.7   0.89  0.44   2.95            6.0
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total Pit & U/G
    -------------------------------------------------------------------------
    Indicated              3.7   0.64  0.34   2.95           23.4
    -------------------------------------------------------------------------
    Inferred               0.8   0.86  0.46   2.95            7.0
    -------------------------------------------------------------------------
    (*) Opencast mineral resources are reported at a cut-off of 0.3% nickel
        that is believed to be suitable for open pit mining scenario, while
        the Underground mineral resources are reported at a cut-off of
        0.7% nickel to reflect a possible underground mining scenario. These
        cut-offs have not been verified by metallurgical testing or by any
        mining engineering studies. All figures have been rounded to reflect
        the relative accuracy of the estimates. Mineral resources are not
        mineral reserves and do not have demonstrated economic viability. SRK
        is not aware of any known environmental, permitting, legal, title,
        taxation, socio-economic, marketing or other relevant issues that
        could potentially affect this estimate of mineral resources
    

    For comparative purpose the original mineral resource statement provided
by SRK in March 2007 is presented in Table 2 below:

    
    Table 2. Earlier Mineral Resource Statement, Kenbridge Nickel-Copper
    Deposit, Ontario, SRK Consulting, March 21, 2007.
    -------------------------------------------------------------------------
                                                     Contained Ni
    Classification   Tonnes (Mt)  Ni%   Cu%   S.G.         (000't)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    IF1(xx)                2.1   0.58  0.26   2.95           12.2
    -------------------------------------------------------------------------
    IF2(xx)                1.1   1.01  0.52   2.95           11.1
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total                  3.2   0.73  0.35   2.95           23.3
    -------------------------------------------------------------------------
    (xx) IF1 mineral resources are reported at a cut-off of 0.3% nickel
         that is believed to be suitable for open pit mining scenario,
         while the IF2 mineral resources are reported at a cut-off of
         0.7% nickel to reflect a possible underground mining scenario.
         These cut-offs have not been verified by metallurgical testing or
         by any mining engineering studies. The numbers have been rounded
         to reflect the relative accuracy of the estimates.
    

    Canadian Arrow's objective is to determine the economics of developing
the Kenbridge Nickel Deposit while adding to the existing mineral resource
through exploration of its high potential targets in northwestern Ontario.
    A copy of the full resource calculation report will be available on the
SEDAR website within 45 days of this press release. The mineral resource
estimate which is effective today was prepared by SRK Consulting (Canada)
Inc., an independent consulting firm. The qualified person (as described under
National Instrument 43-101) responsible for the resource estimate and
technical content of this press release is Mr. Glen Cole, P.Geo, a Principal
Resource Geologist at SRK.
    The exploration program is being carried out under the direction of The
Company's Vice President of Exploration, Todd Keast P. Geo., a qualified
person as defined by National Instrument 43-101. The information in this
release was prepared under the direction of Kim Tyler, P. Geo., President of
the Company, a qualified person as defined by National Instrument 43-101.

    About Canadian Arrow Mines, Ltd:

    Canadian Arrow Mines, Ltd. is an established Canadian exploration and
development Company committed to developing and advancing base metal deposits
close to existing infrastructure through exploration, development and
acquisition. Shares of Canadian Arrow Mines trade on the TSX Venture Exchange
under the symbol "CRO".

    THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL
    RESPONSIBILITY FOR ITS CONTENTS.
    THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THIS PRESS
    RELEASE.

    This news release may contain certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the Company's documents filed from time to time with The TSX
Venture Exchange, Canadian Securities Commissions, and the United States
Securities & Exchange Commission. Not to be construed as an offer to buy or
sell securities of this company.

    %SEDAR: 00008534E




For further information:

For further information: visit the website at www.canadianarrowmines.ca,
or call toll free, 1-877-262-6354, or contact Canadian Arrow Mines, Ltd., R.
Kim Tyler, P. Geo, President, Tel: (705) 673-8259, E-mail:
kim@canadianarrowmines.ca; CHF Investor Relations, Barry Leung, Tel: (416)
868-1079 ext. 247, E-mail: barry@chfir.com; Cathy Hume, CEO, Tel: (416)
868-1079 ext. 231, E-mail: cathy@chfir.com. If you would like to receive press
releases via email please contact sarah@chfir.com.

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